Does anyone know about the fashion industry and their cash flow problems?
I don't know allot about the fashion industry, but it is pretty clear how they develop a cash flow problem.
Before a new fashion designer gets any money into their business they will have had to spend allot of time on their drawings, presenting their line to retailers, creating their designs so that they can be shown and securing a method of production. All of this is going to cost cash and the cash will not start to flow until you can receive actual orders. Even at that point I am not sure how generous retailers will be at paying up front for products they haven't received yet which means you will also have to come up with the cash to finance an inventory of products.
Source(s):
Senior Financial Controller
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